The Annotated Anuad.
Eventually, the wandering Ehlnofey found the hidden land of Old Ehlnofey, and were amazed and joyful to find their kin living amid the splendor of ages past. The wandering Ehlnofey expected to be welcomed into the peaceful realm, but the Old Ehlnofey looked on them as degenerates, fallen from their former glory. For whatever reason, war broke out, and raged across the whole of Nirn. The Old Ehlnofey retained their ancient power and knowledge, but the Wanderers were more numerous, and toughened by their long struggle to survive on Nirn. This war reshaped the face of Nirn, sinking much of the land beneath new oceans, and leaving the lands as we know them (Tamriel, http://www.uesp.net/wiki/Lore:Akavir, http://www.uesp.net/wiki/Lore:Atmora, and http://www.uesp.net/wiki/Lore:Yokuda). The Old Ehlnofey realm, although ruined, became Tamriel. The remnants of the Wanderers were left divided on the other 3 continents.
As for your question about plate tectonics, Nirn only has, what, 6,000 years of history? If there is such a thing, there simply hasn't been enough time to measurably observe it's effects.